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of the house john boehner discussed the issue. gop leaders made it clear they will not support an increase in the tax rate for any american, including top earners. >> we are willing to accept new revenue under the right conditions. what matters is where the increase comes from and what type of reform comes with it. >> budget for the pentagon and other programs will be slashed next year. republicans and democrats said they will try to avoid that at all costs. we found while it could spell financial disaster, many people don't know what the fiscal cliff means to them. ktvu's tom vacar is live with how the outcome could effect all of us. >> reporter: the railroad is upgrading the tracks. but we are near the fiscal cliff. >> reporter: do you know what the fiscal cliff is? >> i don't. >> reporter: do you know what the fiscal cliff is? >> the fiscal cliff? no. i haven't heard of that. >> i haven't a clue what a fiscal cliff is. >> never heard of that term. >> reporter: you will and soon. >> enormous changes that are scheduled to happen around new year's day. >> the president and congress passed
boehner called on the president to lead. >> this is his moment to engage the congress and work towards a solution that can pass both chambers. >> reporter: for the first time there looks to be signs of cooperation. a willingness to negotiate to find a solution. >> i'm not weighted to every detail of my plan. i'm open to compromise. i'm open to new ideas. >> reporter: the president invited congressional leaders of both parties to begin working on a plan. any balanced plan to reduce the deficit must ask the wealthiest of americans to pay more. in washington, jacqueline fell, ktvu, channel 2 news. >> a week ago a lot of people probably didn't know about the fiscal cliff. since the election it seems there are reports about it everywhere. rob roth tells us that seems to be creating a ground swell for action. you talked to a congresswoman about that this today. >> reporter: right. we're standing on 3rd avenue made up of mostly mom and pop shops just like main street usa. folks here say they not only are hoping political leaders avoid the so-called fiscal cliff, they're expecting them to find
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